Signing up for auto insurance can be an intimidating experience. Your insurer will walk you through it, but there are still questions you need to ask to be sure your plan is right for you, and of course we have a list of them for you. Note that insurance can vary by province, so this is a general guide.

What insurers do you represent?

Depending on the agent or broker, you may be dealing with someone who represents a single insurer, or someone who is contracted to several companies. There are pros and cons to each: you may want a company agent if you wish to deal specifically with that insurer, while one who represents several can help you shop for the best rates.

What level of coverage do I need to have?

Each province and territory mandates the minimum amount of coverage you need to have. Knowing what you have to take will help you to decide on any optional coverage you may want to add. It’s especially important to know the minimum amounts for such things as third-party liability. Courts can award injury payouts that are well above the mandatory requirement, and you’ll be on the hook for the difference if you don’t have additional coverage for it.

How much is my deductible?

When you make a claim on your insurance, you have to pay an initial portion of the bill, which is the deductible. A higher deductible will bring down your insurance rate, so find out how much you can save. Be sure it’s still within your reach, though. You’ll pay less for insurance if your deductible is $1,000 instead of $500, but make sure you can afford to pay that $1,000 out of your pocket if your car needs to be repaired.

Do I need collision and comprehensive coverage?

Collision coverage pays for repairs to your vehicle in a crash, while comprehensive covers other types of damage such as vandalism, fire, or theft. If your vehicle is older and not worth much, you may decide it’s not worth it to pay for comprehensive coverages. Your insurer should be able to look up your vehicle’s estimated value and help you decide if you should add these extra options if they are not part of the mandatory coverage in your province.

What other optional coverages are available?

Your insurer should discuss other options and whether they’re a good fit for you. For example, if you have a new vehicle you may want a depreciation waiver, which will essentially give you what you paid for the car if it’s written off within a specified amount of time. If you can’t be without a car, you may want to add loss of use, which will pay for a rental vehicle if yours is being repaired after a collision.

Who can drive on the policy?

You will have to tell your insurer about every licensed driver in your household. If someone doesn’t drive all that much, you may be able to list that person as an occasional driver. If you ever lend your vehicle to others, ask how that could affect your insurance if that person’s involved in a crash.

How will the car I buy affect my policy?

If you’re also shopping for a car, find out how it will affect your rates. In addition to the value of the vehicle, most insurers use a database called the Canadian Loss Experience Automobile Rating, or CLEAR, to determine how much you pay. CLEAR crunches a number of factors to rate vehicles, including the average cost of their repairs, how safe they are, the likelihood of theft, and how easily they’re damaged. You may want to use this information to help decide what car to buy.

Do I qualify for any discounts?

Don’t assume your insurer has automatically added any discounts, so be sure to ask. You may get a lower rate for many things such as your age, how long you’ve been driving and your driving record, if you’ve taken any driving courses, how far you drive, if younger drivers in the household are university students, if you have an anti-theft device, if you’re insuring more than one vehicle, or if you have other policies with the insurer.

How will my premiums be charged?

Depending on the insurer, you may be able to pay your premium monthly, quarterly, or biannually, instead of a lump sum once a year. If you can afford to pay it all at once, see if it will earn you a discount. With some insurers, the less frequent the payment, the more you are entitled to save.

What do I do if something happens?

Ask if the insurer has a 24-hour reporting policy, whether by phone or online. Get the terms of reporting in writing. Some insurers require you to report an incident within a specified amount of time, and may refuse the claim if you’re late. Be sure you understand what’s involved, and what information you will need to provide, when you have to make a claim.

Does the insurer pay for original parts?

Don’t assume your insurer will pay to repair your vehicle with parts from the manufacturer (called “original equipment manufacturer” or “OEM” parts). Some will only pay for less-expensive aftermarket parts, which can vary in quality. This may not be an issue for you, but keep it in mind if you’re comparison-shopping. If necessary, you could pay the difference at repair time to get OEM parts, which might still work in your favour if the policy premium is low enough.

What will a ticket do to my premiums?

If you’re looking at several quotes, find out what a ticket or a claim will do to your premiums. A lower-priced policy may not be a deal if a minor speeding ticket will send it soaring. Some companies offer “forgiveness” programs where you won’t be penalized for your first occurrence, either included as part of the policy, or as an add-on option.

Am I covered for rental vehicles?

If you travel and rent a car on your vacation, find out if your insurance policy will cover it, and if so, if there are any restrictions, such as renting outside of Canada or the United States. Also ask if you plan to drive your own vehicle on vacations beyond these borders, such as into Mexico.